In the latest trading session, Tenet Healthcare (THC) closed at $33.97, marking a +1.62% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.16%. Meanwhile, the Dow lost 0.43%, and the Nasdaq, a tech-heavy index, lost 0.14%.
Prior to today's trading, shares of the hospital operator had lost 9.26% over the past month. This has lagged the Medical sector's gain of 1.82% and the S&P 500's gain of 3.63% in that time.
THC will be looking to display strength as it nears its next earnings release, which is expected to be February 24, 2020. On that day, THC is projected to report earnings of $1.01 per share, which would represent year-over-year growth of 98.04%. Our most recent consensus estimate is calling for quarterly revenue of $4.75 billion, up 2.92% from the year-ago period.
It is also important to note the recent changes to analyst estimates for THC. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. THC is currently a Zacks Rank #1 (Strong Buy).
Investors should also note THC's current valuation metrics, including its Forward P/E ratio of 11.9. This represents a discount compared to its industry's average Forward P/E of 12.89.
We can also see that THC currently has a PEG ratio of 0.63. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. THC's industry had an average PEG ratio of 1.19 as of yesterday's close.
The Medical - Hospital industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 33, which puts it in the top 13% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.